Marginal Happiness

Monday, May 22, 2006

Local minima

I am pleased at the recent correction in the market, especially at the recent unwinding of commodities positions held by hedge funds. The NYSE and NDX still remain at overbought levels, with bullish sentiment looking for an immediate rebound. We have not observed a day of buyer's capitulation yet, but I expect it to arrive in the next ten days.

The nya50r remains stubbornly above the magic 25%. My shopping list includes IAG, GG, CHK, and COP.